INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. March 31, (Expressed in U.S. dollars) (Unaudited)

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2015 (Expressed in U.S. dollars) (Unaudited)

CONTENTS INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Interim Condensed Consolidated Statements of Financial Position... 3 Interim Condensed Consolidated Statements of Comprehensive Income/(Loss)... 4 Interim Condensed Consolidated Statements of Changes in Equity... 5 Interim Condensed Consolidated Statements of Cash Flow... 6 1. Corporate information... 7 2. Basis of preparation... 7 3. Summary of significant accounting policies, estimates and judgments... 8 4. Subsidiaries... 9 5. Cash and cash equivalents... 9 6. Trade and other receivables... 10 7. Prepaid expenses and deposits... 10 8. Inventories... 10 9. Long-term investment... 11 10. Property, plant and equipment... 12 11. Exploration and evaluation assets... 13 12. Mine under construction... 13 13. Trade and other payables... 13 14. Deferred revenue... 14 15. Bank loans... 14 16. Employee retention allowance... 14 17. Derivative Instruments... 15 18. Provision for closure and reclamation... 16 19. Long-term debt... 16 20. Preference shares... 18 21. Share capital... 21 22. Share-based payments... 22 23. Commitments and contingencies... 24 24. Related party transactions... 24 25. Segmented reporting... 25 26. Production costs... 27 27. General and administrative expenses... 27 28. Finance expenses... 28 29. Other charges and provisions, net... 28 30. Put options... 28 31. Financial risk management objectives and policies... 28 32. Cash flows... 33 33. Events after the reporting period... 34 Page 2 of 34

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in thousands of U.S. dollars) (unaudited) ASSETS Current Assets Notes March 31, December 31, 2015 2014 Cash and cash equivalents 5 3,024 1,002 Trade and other receivables 6 6,643 7,261 Prepaid expenses and deposits 7 9,542 6,164 Current portion of inventories 8 28,527 28,893 Non-Current Assets 47,736 43,320 Long-term investment 9 256 1,061 Property, plant and equipment 10 288,434 295,010 Exploration and evaluation 11 132,167 129,959 Non-current portion of inventories 8 4,178 3,874 M ine under construction 12 430,718 414,258 855,753 844,162 TOTAL ASSETS 903,489 887,482 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trade and other payables 13 75,238 86,396 Deferred revenue 14-3,000 Current portion of bank loans 15 18,628 17,123 Employee retention allowance 16 3,558 3,405 Current portion of derivative instruments - mark-to-market 17 9,310 1,393 106,734 111,317 Non-Current Liabilities Non-current portion of bank loans 15-3,869 Provision for closure and reclamation 18 7,941 7,755 Non-current portion of derivative instruments - mark-to-market 17 13,567 - Long-term debt 19 204,055 200,921 Preference shares 20 72,204 71,116 297,767 283,661 Total Liabilities 404,501 394,978 Shareholders' Equity Share capital 21 518,615 518,615 Warrants 21b 13,356 13,356 Contributed surplus 22 43,035 42,526 Accumulated other comprehensive (loss)/income (425) 380 Deficit (75,593) (82,373) 498,988 492,504 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 903,489 887,482 Commitments and contingencies 23 The accompanying notes are an integral part of these interim condensed consolidated financial statements. Page 3 of 34

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Expressed in thousands of U.S. dollars) (unaudited) For the three months ended Notes March 31, 2015 M arch 31, 2014 Operating revenue 41,003 30,439 Operating expenses Production costs 26 (17,895) (20,007) Depletion and depreciation 10 (6,386) (4,391) Total mine operating expenses (24,281) (24,398) Gross earnings from operations 16,722 6,041 General and administrative 27 (2,787) (1,466) Share-based payments 22 (403) (61) Other charges and provisions, net 29 (744) (1,903) Net income from operations 12,788 2,611 Finance expenses 28 (6,055) (3,325) Foreign exchange gain 46 8 Interest income 1 2 Net income/(loss) 6,780 (704) Items that may be reclassified to profit or loss: Foreign currency translation differences of foreign investment in associate 9 - (51) Fair value loss on available-for-sale financial asset 9 (805) - Total comprehensive income/(loss) 5,975 (755) Income/(loss) per share Basic 21c 0.03 (0.00) Diluted 21c 0.03 (0.00) Weighted average number of common shares outstanding Basic 21c 252,101 252,101 Diluted 21c 252,221 252,101 The accompanying notes are an integral part of these interim condensed consolidated financial statements. Page 4 of 34

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in thousands of U.S dollars) (unaudited) Share capital Notes Number of common Contributed shares (in thousands) Amount $ Warrants $ Surplus $ Currency Availablefor-sale Translation Adjustment asset $ $ Total Shareholders' Deficit Equity $ $ Balance as at January 1, 2014 252,101 518,615 13,356 41,793 (87) - (82,693) 490,984 Net loss for the period - - - - - - (704) (704) Share-based payments 22 - - - 127 - - - 127 Foreign currency translation differences of foreign investment in associate 9 - - - - (51) - - (51) Balance as at March 31, 2014 252,101 518,615 13,356 41,920 (138) - (83,397) 490,356 Net income for the period - - - - - - 1,024 1,024 Share-based payments 22 - - - 620 - - - 620 Long-term investment 9 - - - (14) 110 - - 96 Foreign currency translation differences of foreign investment in associate 9 - - - - 28 - - 28 Fair value gain on available-for-sale financial asset 9 - - - - - 380-380 Balance as at December 31, 2014 252,101 518,615 13,356 42,526-380 (82,373) 492,504 Net income for the period - - - - - - 6,780 6,780 Share-based payments 22 - - - 509 - - - 509 Fair value loss on available-for-sale financial asset 9 - - - - - (805) - (805) Balance as at March 31, 2015 252,101 518,615 13,356 43,035 - (425) (75,593) 498,988 The accompanying notes are an integral part of these interim condensed consolidated financial statements. Page 5 of 34

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Expressed in thousands of U.S dollars) (unaudited) For the three months ended Notes March 31, 2015 M arch 31, 2014 Cash flows from operating activities Net income/(loss) for the period 6,780 (704) Adjustments for: Recognition of deferred revenue 14 (3,000) (7,369) Depletion and depreciation 10 6,411 4,405 Unrealized foreign exchange loss/(gain) 16 (81) Share-based payments 22 403 61 Employee retention allowance 16 154 155 Finance expense excluding bank charges, net of interest income 28 5,518 2,990 Accretion on closure and reclamation 18 186 155 Other charges and provisions, net 29 744 1,903 Interest paid (1,372) (1,772) Interest received - 2 Operating cash flows before working capital adjustments 15,840 (255) Working capital adjustments 32 (8,152) 723 Net cash flows provided by operating activities 7,688 468 Cash flows from investing activities Acquisition of property, plant, and equipment 10 (2,235) (4,571) Exploration and evaluation expenditures and associated working capital movements 11 (3,505) (3,890) Expenditures on mine under construction and associated working capital movements, net of pre-production revenue 12 (6,822) (10,772) Interest paid (8,348) (8,370) Advances - Long-term investment 9 - (1) Net cash used in investing activities (20,910) (27,604) Cash flows from financing activities Bank overdraft 13 (1,280) 3,764 Net proceeds from derivative liabilities 17 19,700 - Net proceeds from shares issuance 20, 21-39,096 Payment of dividends 20 (750) (737) Net proceeds from (repayments of) bank loans 15 (2,364) (1,996) Net cash provided by financing activities 15,306 40,127 Effect of foreign exchange on cash and cash equivalents (62) (10) Net increase in cash and cash equivalents 2,022 12,981 Cash and cash equivalents, beginning of the period 1,002 4,452 Cash and cash equivalents, end of the period 3,024 17,433 Other cash flow items and non-cash transactions (Note 32) The accompanying notes are an integral part of these interim condensed consolidated financial statements. Page 6 of 34

1. CORPORATE INFORMATION Banro Corporation s business focus is the exploration, development and production of mineral properties in the Democratic Republic of the Congo (the Congo ). Banro Corporation (the Company ) was continued under the Canada Business Corporations Act on April 2, 2004. The Company was previously governed by the Ontario Business Corporations Act. These interim condensed consolidated financial statements as at and for the three months ended March 31, 2015 include the accounts of the Company and of its wholly-owned subsidiary incorporated in the United States, Banro American Resources Inc., as well as its subsidiary in the Congo, Banro Hydro SARL, and its subsidiary in Barbados, Banro Group (Barbados) Limited. The Company is a publicly traded company whose outstanding common shares are listed for trading on the Toronto Stock Exchange and on the NYSE MKT LLC. The head office of the Company is located at 1 First Canadian Place, 100 King St. West, Suite 7070, Toronto, Ontario, M5X 1E3, Canada. 2. BASIS OF PREPARATION a) Statement of compliance These interim condensed consolidated financial statements as at and for the three months ended March 31, 2015, including comparatives, have been prepared in accordance with International Accounting Standards ( IAS ) 34 Interim Financial Reporting ( IAS 34 ) using accounting policies consistent with the International Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ). The disclosure contained in these interim condensed consolidated financial statements does not include all the requirements in IFRS. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the Company s annual consolidated financial statements as at and for the year ended December 31, 2014, which includes information necessary to understand the Company s business and financial statement presentation. Certain comparative figures have been reclassified and aggregated to conform to the current period s presentation. Royalties of $304 have been reclassified from General and Administrative expense to Production Costs; Share of loss from investment in associate of $17 and Loss on change in fair value of derivative financial instruments of $1,886 have been reclassified to Other Charges and Provisions, net; and Transaction Costs of $904, Interest and Bank Charges of $1,684, and Dividends paid on Preferred Shares of $737 are now presented as Finance Expenses. The date the Company s Board of Directors approved these interim condensed consolidated financial statements was May 13, 2015. b) Continuation of Business These interim condensed consolidated financial statements have been prepared on a going concern basis, under the historical cost basis, except for certain financial instruments which are presented at fair value. The Company earned net income of $6,780 for the three months ended March 31, 2015 (three months ended March 31, 2014 net loss of $704) and as at March 31, 2015 had a working capital deficit of $58,998 (December 31, 2014 - $67,997). The Company s ability to continue operations in the normal course of business is dependent on several factors, including its ability to secure additional funding. Management is exploring all available options to secure additional funding, including forward sale agreements, equity financing and strategic partnerships. In addition, the recoverability of the amount shown for exploration and evaluation assets is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain financing to continue to perform exploration activity or complete the development of the properties where necessary, or alternatively, upon the Company s ability to recover its incurred costs through a disposition of its interests, all of which are uncertain. Page 7 of 34

In the event the Company is unable to identify recoverable resources, receive the necessary permitting, or arrange appropriate financing, the carrying value of the Company s assets and liabilities could be subject to material adjustment. Furthermore, market conditions may raise substantial doubt on the Company s ability to continue as a going concern. These interim condensed consolidated financial statements do not include any additional adjustments to the recoverability and classification of recorded asset amounts, classification of liabilities and changes to the statements of comprehensive income/(loss) that might be necessary if the Company was unable to continue as a going concern. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS These interim condensed consolidated financial statements have been prepared using the same accounting policies and methods of computation as presented in Note 3 of the annual consolidated financial statements of the Company as at and for the year ended December 31, 2014, except for those newly adopted accounting standards noted below. a) Newly Applied Accounting Standards The following amended standards were applied as of January 1, 2015: IFRS 8, Operating Segments (amendment); and IAS 24, Related Party Disclosures (amendment). The adoption of these amended standards did not have a significant impact on the Company s interim condensed consolidated financial statements. b) Accounting Standards Issued But Not Yet Effective The Company has reviewed new and revised accounting pronouncements that have been issued but are not yet effective and determined that the following may have an impact on the Company: IFRS 9, Financial instruments ( IFRS 9 ) was issued by the IASB on July 24, 2014 and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 is intended to reduce the complexity for the classification, measurement, and impairment of financial instruments. The mandatory effective date is for annual periods beginning on or after January 1, 2018. The Company is evaluating the impact of this standard on its consolidated financial statements. Amendments to IFRS 10, Consolidated Financial Statements ( IFRS 10 ), IFRS 12 Disclosure of Interests in Other Entities ( IFRS 12 ), and IAS 28 Investments in Associates and Joint Ventures ( IAS 28 ) were published by the IASB in December 2014. The amendments define the application of the consolidation exception for investment entities. They are effective for annual periods beginning on or after January 1, 2016. The Company is evaluating the impact of these standards but does not expect these standards to have a material impact on its consolidated financial statements. IFRS 15, Revenue from Contracts with Customers ( IFRS 15 ) was issued by the IASB on May 28, 2014 and will replace IAS 18 Revenue and IAS 11 Construction Contracts and related interpretations. IFRS 15 provides a more detailed framework for the timing of revenue recognition and increased requirements for disclosure of revenue. IFRS 15 uses a control-based approach to recognize revenue which is a change from the risk and reward approach under the current standard. The mandatory effective date is for annual periods beginning on or after January 1, 2018. The Company is evaluating the impact of this standard on its consolidated financial statements. Amendments to IAS 1, Presentation of Financial Statements ( IAS 1 ) were issued by the IASB in December 2014. The amendments clarify principles for the presentation and materiality consideration for the financial statements and notes to improve understandability and comparability. The amendments to IAS 1 are effective for annual periods beginning on or after January 1, 2016. The Company is evaluating the impact of this standard on its consolidated financial statements. Amendments to IAS 16, Property, Plant and Equipment ( IAS 16 ) were issued by the IASB in May 2014. The amendments prohibit the use of a revenue-based depreciation method for property, plant and equipment as it is not reflective of the Page 8 of 34

economic benefits of using the asset. They clarify that the depreciation method applied should reflect the expected pattern of consumption of the future economic benefits of the asset. The amendments to IAS 16 are effective for annual periods beginning on or after January 1, 2016. The Company does not expect the standard to have a material impact on its consolidated financial statements. Amendments to IAS 38 Intangible Assets ( IAS 38 ) were issued by the IASB in May 2014. The amendments prohibit the use of a revenue-based depreciation method for intangible assets. Exceptions are allowed where the asset is expressed as a measure of revenue or revenue and consumption of economic benefits for the asset are highly correlated. The amendments to IAS 38 are effective for annual periods beginning on or after January 1, 2016. The Company is evaluating the impact of this standard but does not expect the standard to have a material impact on its consolidated financial statements. 4. SUBSIDIARIES The following table lists subsidiaries of the Company: Name of Subsidiary Place of Incorporation Proportion of Beneficial Common Principal Activity Share Ownership Interest Twangiza Mining SA 1 Congo 100% Mining Namoya Mining SA 1 Congo 100% Mining Lugushwa Mining SA 1 Congo 100% Mining Kamituga Mining SA 1 Congo 100% Mining Banro Congo Mining SA 1 Congo 100% Mining Banro Hydro SARL Congo 100% Inactive Banro American Resources Inc. United States of America 100% Inactive Twangiza (Barbados) Limited Barbados 100% Holding and Financing Namoya (Barbados) Limited Barbados 100% Holding and Financing Lugushwa (Barbados) Limited Barbados 100% Holding Kamituga (Barbados) Limited Barbados 100% Holding Banro Congo (Barbados) Limited Barbados 100% Holding Banro Group (Barbados) Limited Barbados 100% Holding and Financing 1 During the three months ended September 30, 2014, these entities were reincorporated as "SA" entities in the Congo as per changes in the country's corporate laws. 5. CASH AND CASH EQUIVALENTS March 31, December 31, 2015 2014 Cash 2,827 786 Cash equivalents 197 216 3,024 1,002 Cash and cash equivalents of the Company include cash on hand, deposits held at financial institutions, and other short-term, highly liquid investments with original maturities of three months or less that is readily convertible to known amounts of cash. Page 9 of 34

6. TRADE AND OTHER RECEIVABLES March 31, December 31, 2015 2014 Advances to employees 246 211 VAT receivable 6,160 6,797 Other receivables 237 253 6,643 7,261 As at March 31, 2015, there was no allowance on the value-added taxes ( VAT ) or advances to employees as all amounts are expected to be fully recovered (December 31, 2014 - $nil). 7. PREPAID EXPENSES AND DEPOSITS March 31, 2015 December 31, 2014 Supplier prepayments and deposits - Twangiza 4,896 3,066 Supplier prepayments and deposits - Namoya 3,126 1,959 Prepaid insurance and rent 1,520 1,139 9,542 6,164 8. INVENTORIES March 31, December 31, 2015 2014 Ore in stockpiles 1,151 709 Gold in process 512 723 Gold bullion 3,195 2,143 Mine operating supplies 23,669 25,318 Total current portion 28,527 28,893 Non-current ore in stockpiles 1 4,178 3,874 Total non-current portion 4,178 3,874 Total 32,705 32,767 1 Includes low-grade material not scheduled for processing within the next twelve months. During the three months ended March 31, 2015, the Company recognized $17,895 (three months ended March 31, 2014 - $20,007) of parts and supplies inventory as an expense within production costs in the interim condensed consolidated statement of comprehensive income/(loss). Page 10 of 34

9. LONG-TERM INVESTMENT The Company s investment in Delrand Resources Limited ( Delrand ), which met the definition of an associate of the Company until May 2014, is classified as an available for sale financial asset as at March 31, 2015 and December 31, 2014, and is summarized as follows: Delrand Resources Limited March 31, Delrand, a publicly listed entity on the Toronto Stock Exchange and the JSE Limited in South Africa, is involved in the acquisition and exploration of mineral properties in the Congo. It has an annual reporting date of June 30. The fair value of the Company s investment in Delrand, based on the closing price of Delrand s shares on the Toronto Stock Exchange as at March 31, 2015, is $256 (December 31, 2014 - $1,061). For the three months ended March 31, 2015, the Company's fair value loss of $805 was reflected in other comprehensive income/(loss) (three months ended March 31, 2014 share of loss in the results of Delrand of $17 was included in the interim condensed statement of comprehensive income/(loss) and a loss from foreign currency translation differences of foreign investment in associate of $51 reflected in other comprehensive income/(loss)). 2015 December 31, Percentage of ownership interest 7.06% 7.06% Common shares held 1,539 1,539 Total investment $ 256 $ 1,061 2014 Page 11 of 34

10. PROPERTY, PLANT AND EQUIPMENT The Company s property, plant and equipment are summarized as follows: Mining assets Construction Plant and in progress equipment Total I) Cost Balance as at January 1, 2014 54,771 35,293 276,596 366,660 Additions - 14,249 4,421 18,670 Transfers - (48,010) 48,010 - Disposals - - (1,619) (1,619) Balance as at December 31, 2014 54,771 1,532 327,408 383,711 Additions - 1,204 1,031 2,235 Balance as at March 31, 2015 54,771 2,736 328,439 385,946 II) Accumulated Depreciation Balance as at January 1, 2014 12,750-41,805 54,555 Depreciation for the year - - 27,914 27,914 Depletion for the year 7,698 - - 7,698 Disposals - - (1,466) (1,466) Balance as at December 31, 2014 20,448-68,253 88,701 Depreciation for the period - - 7,381 7,381 Depletion for the period 1,430 - - 1,430 Balance as at March 31, 2015 21,878-75,634 97,512 III) Carrying amounts Balance as at December 31, 2014 34,323 1,532 259,155 295,010 Balance as at March 31, 2015 32,893 2,736 252,805 288,434 During the three months ended March 31, 2015 and 2014, no assets were disposed of. The Company s property, plant and equipment in the Congo are pledged as security. Page 12 of 34

11. EXPLORATION AND EVALUATION ASSETS The following table summarizes the Company s tangible exploration and evaluation expenditures with respect to its five properties in the Congo: There is approximately $20 of intangible exploration and evaluation expenditures as at March 31, 2015 (December 31, 2014 - $20). The intangible exploration and evaluation expenditures, representing mineral rights held by Banro Congo Mining, have not been included in the table above. 12. MINE UNDER CONSTRUCTION Twangiza Namoya Luguswha Kamituga Banro Congo Mining Cost Balance as at January 1, 2014 28,595 15,051 50,270 21,002 2,802 117,720 Additions 2,431 1,792 3,163 3,408 1,425 12,219 Balance as at December 31, 2014 31,026 16,843 53,433 24,410 4,227 129,939 Additions 368 284 609 610 337 2,208 Balance as at March 31, 2015 31,394 17,127 54,042 25,020 4,564 132,147 Development expenditures with respect to the construction of the Company s Namoya mine are as follows: Total Mines under construction are not depreciated until construction is completed. This is signified by the formal commissioning of a mine for production. Revenues realized before commencement of commercial production ( pre-commercial production revenue ) are recorded as a reduction of the respective mining asset. A capitalization rate of 10.2% was used for general borrowings. 13. TRADE AND OTHER PAYABLES Namoya Mine Cost $ Balance as at January 1, 2014 337,203 Additions 98,742 Pre-commercial production revenue (21,687) Balance as at December 31, 2014 414,258 Additions 27,943 Pre-commercial production revenue (11,483) Balance as at March 31, 2015 430,718 March 31, 2015 December 31, 2014 Bank overdrafts 2,373 3,653 Accounts payable 66,821 70,358 Accrued liabilities 6,044 12,385 75,238 86,396 Page 13 of 34

Accounts payable and accrued liabilities are mainly comprised of amounts outstanding for purchases relating to exploration, development, and production activities and amounts payable for professional services. The credit term period for purchases typically ranges from 30 to 120 days. 14. DEFERRED REVENUE In October 2014, the Company entered into a prepayment arrangement with Auramet International, LLC ( Auramet ) (the organization through which the Company currently sells gold produced from its mines) for $6,000 to deliver a total of 5,228 ounces of gold in equal monthly deliveries of 1,307 ounces from November 2014 to February 2015. As per the agreement, the Company delivered gold in November and December 2014 with a remaining balance of $3,000 for the delivery of 2,614 ounces as of December 31, 2014. The Company delivered 1,307 ounces each in January and February 2015. Deferred revenue of $7,369 as at December 31, 2013, represented a prepayment arrangement for the delivery of 6,250 ounces of gold to Auramet in January 2014. As at March 31, 2015, all deliveries on the Company s deferred revenue arrangements were completed. In determining the appropriate recognition and presentation of the deferred revenue, the Company made judgments with regards to the arrangement with Auramet including the Company s quantity and timing of expected future production, intent of the arrangement, and the option to settle in cash. 15. BANK LOANS During the three months ended March 31, 2015, the Company made repayments on outstanding bank loans as per the terms of the loan agreements. $ Balance at January 1, 2014 42,500 Withdrawals 3,000 Renegotiation Fee 106 Repayments (24,614) Balance at December 31, 2014 20,992 Repayments (2,364) Balance at March 31, 2015 18,628 The Company has accrued interest on the credit facilities of $106 as of March 31, 2015 (December 31, 2014 - $154) under accrued liabilities in its interim condensed consolidated statement of financial position. The Company has recorded interest expense of $nil, for the three months ended March 31, 2015 (March 31, 2014 - $341) and $434 was recorded in mine under construction for the three months ended March 31, 2015 (March 31, 2014 - $504) in relation to the bank loans. 16. EMPLOYEE RETENTION ALLOWANCE The Company has an employee retention incentive plan under which an amount equal to one-month salary per year of service is accrued to each qualified employee up to a maximum of 10 months (or 10 years of service with the Company). To qualify for this retention allowance, an employee must complete two years of service with the Company. The full amount of retention allowance accumulated by a particular employee is paid out when the employee is no longer employed with the Company, unless there is a termination due to misconduct, in which case the retention allowance is forfeited. There is uncertainty about the timing of these outflows but with the information available and assumption that eligible employees will not be terminated due to misconduct, as at March 31, 2015, the Company had accrued a liability of $3,558 (December 31, 2014 - $3,405). The following table summarizes information about changes to the Company s employee retention allowance during the three months ended March 31, 2015. Page 14 of 34

$ Balance as at January 1, 2014 2,777 Additions 899 Forfeitures (92) Payments to employees (179) Balance as at December 31, 2014 3,405 Additions 268 Forfeitures (42) Payments to employees (73) Balance as at March 31, 2015 3,558 17. DERIVATIVE INSTRUMENTS a) Gold Prepayment Arrangement In February 2015, the Company closed a gold forward sale agreement relating to the Twangiza mine. The agreement provided for the prepayment by the purchaser of $20,000 for its purchase of 22,248 ounces of gold from the Twangiza mine, with the gold deliverable over three years, at 618 ounces per month. The forward sale may be terminated at any time upon payment to the purchaser of a one-time termination amount that would result in the purchaser receiving an internal rate of return of 20%. The terms of the forward sale also include a gold floor price mechanism whereby, if the gold price falls below $1,100 per ounce in any month, additional ounces are deliverable to ensure a realized gold price of $1,100 per ounce for that month. The Company has classified the obligation under the agreement as a financial instrument at fair value through profit or loss based on the intent, terms and nature of the agreement. Transaction costs of $300 were expensed to the interim condensed consolidated statement of comprehensive income/(loss). As at March 31, 2015, a fair value of $20,351 was included in derivative instruments and a loss of $351 relating to the revaluation of the instrument was reflected in the interim condensed consolidated statement of comprehensive income/(loss). The Company has classified $13,567 as non-current based on the expected timing of extinguishing the instrument. In February 2015, the Company closed a gold prepayment arrangement with Auramet for $3,000 to deliver 840 ounces each for three consecutive months. The Company classified the obligation under the agreement as a financial instrument at fair value through profit or loss based on the intent, terms and nature of the agreement. The first delivery was made in March 2015. As at March 31, 2015, the liability to deliver the remaining 1,680 ounces was recorded as a derivative instrument at a fair value of $1,994 and a loss of $2 relating to the revaluation of the instrument was reflected in the interim condensed consolidated statement of comprehensive income/(loss). As at December 31 2014, the Company had an outstanding obligation, valued at $1,291, for the delivery of 535 ounces per month in January and February 2015. As of March 31, 2015, the Company had delivered all ounces for this arrangement and a fair value loss of $111 on this obligation was reflected in the interim condensed consolidated statement of comprehensive income/(loss). b) Call Options In connection with the gold prepayment arrangement in February 2015, the Company issued call options for the purchase of 6,000 ounces of gold in September 2015 at a price of $1,300 per ounce. The call options were initially recognized at their fair value of $96 and subsequently revalued as at March 31, 2015 to $50. During the three months ended March 31, 2015, the Company reflected an unrealized fair value gain of $46 on these call options in the interim condensed consolidated statement of comprehensive income/(loss) (March 31, 2014 - $nil). As at March 31, 2015, the Company has outstanding call options for the purchase of 1,250 ounces of gold per month for 4 months starting in June 2015 at a price of $1,400 per ounce. The call options were revalued as at March 31, 2015 to $3 (December 31, 2014 - $16). During the three months ended March 31, 2015, the Company reflected an unrealized fair value gain of $13 on these call options in the interim condensed consolidated statement of comprehensive income/(loss) (March 31, 2014 - $nil). Page 15 of 34

c) Warrants to Purchase Common Shares On August 18, 2014, warrants were issued as a part of a debt facility arranged by the Company (see Note 19). The warrants entitle the holders thereof to acquire 13.3 million common shares of the Company at a price of Cdn$0.269 per share for a period of 3 years, expiring August 18, 2017. As at March 31, 2015, all warrants issued were outstanding. For the three months ended March 31, 2015, the Company reflected a fair value loss on the revaluation of these warrants of $393 in the statement of comprehensive income/(loss) (March 31, 2014 - $nil). As of March 31, 2015, the Company recorded a fair value derivative liability of $479 (December 31, 2014 - $86). 18. PROVISION FOR CLOSURE AND RECLAMATION The Company recognizes a provision related to its constructive and legal obligations in the Congo to restore its properties. The cost of this obligation is determined based on the expected future level of activity and costs related to decommissioning the mines and restoring the properties. The provision for the Twangiza mine is calculated at the net present value of the estimated future undiscounted cash flows using an interest rate of 9.57%, a mine life of 10 years, and estimated future undiscounted liability of $9,060 (December 31, 2014 - $9,060). The provision for the Namoya mine is calculated at the net present value of the future estimated undiscounted liability using an interest rate of 9.57%, a mine life of 10 years, and estimated future undiscounted liability of $10,281 (December 31, 2014 - $10,281). For the three months ended March 31, 2015, the Company recorded an accretion expense of $186 (March 31, 2014 - $18) in the interim condensed consolidated statement of comprehensive income/(loss). As at March 31, 2015, the Company recorded a provision for mine rehabilitation of $7,941 (December 31, 2014 - $7,755). 19. LONG-TERM DEBT Twangiza Mine Namoya Mine On August 18, 2014, the Company closed a liquidity backstop facility (the Facility ) for gross aggregate proceeds of up to $35,000. The Facility provides for the issuance by the Company of two classes of notes, defined as Priority Lien Notes and Parity Lien Notes, as well as common share purchase warrants of the Company (see Note 17c). The notes mature on July 31, 2016, but may be prepaid at any time in whole or in part without penalty. The notes bear initial interest rates of 10% and 15% for the Priority Lien Notes and Parity Lien Notes, respectively, accruing and payable monthly in arrears, with semi-annual step up provisions in interest to as high as 20% and 25% for the Priority Lien Notes and Parity Lien Notes, respectively, seven months before expiry. Any interest payable on or before July 31, 2015 may be capitalized monthly by the Company by adding the accrued interest to the outstanding principal of the notes. The interest rate applicable to any such capitalized interest will be 2% higher. On August 18, 2014, the Company drew down under the Facility a total of $27,700 ($19,700 in Priority Lien Notes and $8,000 in Parity Lien Notes). On August 29, 2014, the Company drew down under the Facility an additional $3,000 (evidenced by Priority Lien Notes). The monthly interest payable on the notes from August 31 to December 31 was capitalized. On October 17, 2014, the Company drew down the remaining balance of $4,300 in Priority Lien Notes. On December 9, 2014, the Facility was amended to increase the aggregate proceeds limit to $37,000 and the Company drew down an additional $2,000 in Parity Lien Notes. The Company recognized the long-term debt portion of the securities issued under the Facility, at a fair value of $36,640 less transaction costs of $1,143, in its interim condensed consolidated statement of financial position. As a portion of the proceeds Total $ Balance at January 1, 2014 2,023 2,195 4,218 Change in discount rate 1,371 1,557 2,928 Unwinding of the discount rate 293 327 620 Addition/(decrease) in obligation (54) 43 (11) Balance at December 31, 2014 3,633 4,122 7,755 Unwinding of the discount rate 87 99 186 Balance at March 31, 2015 3,720 4,221 7,941 Page 16 of 34

from the Facility is attributable to the construction of the Namoya mine, the Company will capitalize 100% of borrowing costs for the $2,000 in Parity Lien Notes and the related portion of all other borrowing costs calculated using a rate of 21.91%. As at March 31, 2015, the fair value of the long-term debt approximates its carrying value. For the three months ended March 31, 2015, the Company capitalized borrowing costs of $505 (March 31, 2014 $nil) to Mine under Construction and recognized $1,361 (March 31, 2014 - $nil) of borrowing costs under finance expense in its interim condensed consolidated statement of comprehensive income/(loss). As of March 31, 2015, the Company included capitalized interest on the outstanding principal of $4,235 (December 31, 2014 - $2,369) under long-term debt in its interim condensed consolidated statement of financial position as the capitalized interest will remain outstanding until the date of extinguishment, in whole or part. On March 2, 2012, the Company closed a debt offering for gross proceeds of $175,000 (the Offering ). A total of 175,000 units (the Units ) of the Company were issued. Each Unit consisted of $1 principal amount of notes ( the Notes ) and 48 common share purchase warrants ( the Warrants ) of the Company. The Notes will mature March 1, 2017 and bear interest at a rate of 10%, accruing and payable semi-annually in arrears on March 1 and September 1 of each year. Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $6.65 for a period of five years, expiring March 1, 2017. The Company recognized the long-term debt portion of the Units, at its fair value of $160,959 less transaction costs of $9,197, in its interim condensed consolidated statement of financial position. The residual value of $14,041 less $789 in transaction costs has been attributed to the Warrants. As a portion of the proceeds from the Offering is attributable to the construction of the Namoya mine, the Company will capitalize the related portion, 88%, of all borrowing costs. As at March 31, 2015, the fair value of the long-term debt is $86,625 (December 31, 2014 - $113,750) which is valued using a market approach. For the three months ended March 31, 2015, the Company capitalized borrowing costs of $4,955 (March 31, 2014 $4,819) to Mine under Construction and recognized $617 (March 31, 2014 - $670) of borrowing costs under finance expense in its interim condensed consolidated statement of comprehensive income/(loss). As of March 31, 2015, the Company included accrued interest on the long-term debt of $1,458 (December 31, 2014 - $5,833) under accrued liabilities in its interim condensed consolidated statement of financial position. The Company has complied with its long-term debt covenants as at March 31, 2015. Offering Facility Total $ Balance at January 1, 2014 158,599-158,599 Debt issued - 35,497 35,497 Accretion and capitalized interest 4,456 2,369 6,825 Balance at December 31, 2014 163,055 37,866 200,921 Accretion and capitalized interest 1,268 1,866 3,134 Balance at March 31, 2015 164,323 39,732 204,055 The table below details the timing of payments for principal and interest on the long-term debt: Payments due by period Less than One to three Three to four After four Total one year years years years $ Offering debt 175,000-175,000 - - Offering debt interest 35,000 17,500 17,500 - - Facility debt 37,000-37,000 - - Facility debt interest 13,848 5,265 8,583 - - Page 17 of 34

20. PREFERENCE SHARES a) Authorized The Company may issue preference shares at any time and from time to time in one or more series with designations, rights, privileges, restrictions and conditions fixed by the board of directors. The preference shares of each series shall be ranked on a parity with the preference shares of every other series and are entitled to priority over the common shares and any other shares of the Company ranking junior to the preference shares, with respect to priority in payment of dividends and the return of capital and the distribution of assets of the Company in the event of liquidation, dissolution or winding up of the Company. b) Issued On April 25, 2013 (the Closing Date ), the Company issued 116,000 series A preference shares of the Company at a price of $25 per series A preference share ( Series A Shares ) and 1,200,000 preferred shares of a subsidiary ( Subco ) of the Company (the Subco Shares ) combined with 1,200,000 associated series B preference shares ( Series B Shares ) of the Company at a price of $25 per combined Subco Share and Series B Share, for gross aggregate proceeds of $32,900. Collectively, the Series A Shares and Subco Shares are referred to as the Preference Shares. Quarterly preferential cumulative cash dividends will accrue and, if, as and when declared by the applicable board of directors are payable on the last day of each of March, June, September and December in each year from the date of issuance. The amount of dividends that will accrue on the Preference Shares on any dividend payment date shall be an amount per share equal to the product obtained by multiplying (i) the Dividend Liquidation Preference (as defined below) on such dividend payment date by (ii) the quotient obtained by dividing (A) the Production Schedule Yield (as defined below) on such dividend payment date by (B) four. The Dividend Liquidation Preference of a Preference Share on any dividend payment date means an amount equal to (i) the simple average of the afternoon London Gold Fix price per troy ounce for each trading day during the three month period ending on the immediately preceding dividend payment date multiplied by (ii) 0.017501. The Production Schedule Yield means for any dividend payment date the percentage rate appearing under the heading Annual Dividend Yield in the table below corresponding to the Monthly Production Level for such dividend payment date (where Monthly Production Level for any dividend payment date refers to the average monthly production level during the three-month period ending on the immediately preceding dividend payment date). Monthly Production Annual Dividend Level (ounces) Yield (%) < 8,001 10.00 8,001-9,000 10.50 9,001-10,000 11.00 10,001-11,000 11.50 11,001-12,000 12.00 12,001-13,000 12.50 13,001-14,000 13.00 14,001-15,000 13.50 15,001-16,000 14.00 16,001-17,000 14.50 > 17,000 15.00 Page 18 of 34

The Preference Shares are not redeemable at the option of the Company or Subco, as applicable, until the later of (i) the first date on which the Company and its subsidiaries have achieved total cumulative gold production of 800,000 ounces from and including the Closing Date and (ii) the date that is five years from the Closing Date. Commencing on the first day after the date that is five years from the Closing Date, for so long as the Company and its subsidiaries have achieved total cumulative gold production that is less than 800,000 ounces from the Closing Date, each holder of the Preference Shares will have the option at any time to require the Company or Subco, as applicable, to redeem all or a part of its Preference Shares. Commencing on the tenth anniversary of the Closing Date, each holder of a Preference Share will have the option at any time to require the Company or Subco, as applicable, to redeem the Preference Shares legally available for such purpose. The Series B Shares were issued for a nominal price and are held by the sole holder of all of the Subco Shares. The terms of the Series B Shares provide that, in the event that two quarterly dividend payments (whether or not consecutive) on the Subco Shares or the Series A Shares shall have accrued and been unpaid, the holders of the Series B Shares will be entitled to notice of, and to attend, at each annual and special meeting of shareholders or action by written consent at which directors of the Company will be elected and will be entitled to a separate class vote, together with the holders of the Series A Shares and the holders of any other series of shares of the Company ranking on a parity with such Series B Shares or Series A Shares either as to dividends or the distribution of assets upon liquidation, dissolution or winding up and upon which like voting rights have been conferred and are exercisable to elect two members to the board of directors of the Company (each a "Preferred Holder Director") until dividends on the Subco Shares or Series A Shares have been paid in full or declared and set apart in trust for payment (whereupon such right shall cease unless and until another quarterly dividend payment on the Subco Shares or Series A Shares shall have accrued and been unpaid). The Company has classified the Preference Shares as financial instruments measured at fair value through profit or loss for reporting purposes given that the shares contain an embedded derivative since they may possibly be redeemed at the option of the holder at a future date at a value based on future circumstances. The Preference Shares are revalued at each reporting date, with a gain or loss reported in the Company s interim condensed consolidated statement of comprehensive income/(loss). On issuance, the Company recognized the Preference Shares at their fair value of $32,900 in its interim condensed consolidated statement of financial position. As at March 31, 2015, the Company has recognized the Preference Shares at their fair value of $33,120 (December 31, 2014 - $32,626). For the three months ended March 31, 2015, a loss of $395 was recorded in the statement of comprehensive income/(loss) for the change in fair value of the derivative financial liability (March 31, 2014 loss of $1,877). The fair value of the Preference Shares was obtained by using a market approach. On December 31, 2014 and March 31, 2015, the Company and Subco elected not to declare a dividend on the Preference Shares. As at March 31, 2015, accrued dividends of $849 was included in the Preference Shares balance (December 31, 2014 - $1,590). During the three months ended March 31, 2015, dividends of $750 relating to the three-month period ended September 30, 2014 were declared and paid. For the three months ended March 31, 2015, $142 of dividends was capitalized to mine under construction (three months ended March 31, 2014 - $nil). In February 2014, the Company completed a $40,000 financing through a non-brokered private placement (the "Private Placement") involving the issuance of preferred shares (collectively, the Private Placement Preferred Shares ) of two of the Company's subsidiaries (Namoya (Barbados) Limited and Twangiza (Barbados) Limited). The Private Placement Preferred Shares pay an 8% cumulative preferential cash dividend, payable quarterly, and mature on June 1, 2017. At the option of the holders and at any time before the maturity date, the holders will be entitled to exchange their Private Placement Preferred Shares into 63 million common shares of the Company at a strike price of $0.5673 per common share. A portion of the proceeds from the Private Placement were used towards the completion of the Namoya Mine; therefore, a portion of the dividends accrued and paid were capitalized to mine under construction. The first four dividend payments on the Private Placement Preferred Shares may be deferred by the Company and accumulated at an annual rate of 10%. The dividend payments due on September 2, 2014, December 1, 2014 and March 1, 2015 were deferred. The Company has elected to classify the Private Placement Preferred Shares as financial instruments measured at fair value through profit or loss for reporting purposes given that the shares comprise multiple embedded derivatives. The Private Placement Preferred Shares are revalued at each reporting date, with a gain or loss reported in the Company s interim Page 19 of 34

condensed consolidated statement of comprehensive income/(loss). On issuance, the Company recognized the Private Placement Preferred Shares at their fair value of $40,000 in its interim condensed consolidated statement of financial position. As at March 31, 2015, the Company has recognized the Private Placement Preferred Shares at their fair value of $39,084 (December 31, 2014 - $38,490). For the three months ended March 31, 2015, a gain of $449 was included in the interim condensed consolidated statement of comprehensive income/(loss) for the change in fair value of the derivative financial liability (March 31, 2014 loss of $94). The fair value of the Private Placement Preferred Shares was obtained by using a market approach. As at March 31, 2015, capitalized dividends of $3,634 were included in the Private Placement Preferred Shares balance of $39,084 (December 31, 2014 capitalized dividends of $2,591). For the three months ended March 31, 2015, dividends of $342 were capitalized to mine under construction (March 31, 2014 - $nil) and dividend expense of $701 was reflected in the interim condensed consolidated statement of comprehensive income/(loss). Issued and outstanding preference/preferred shares are as follows (number of shares in thousands): Number of Shares Fair Value (in thousands) $ Series A Preference Shares Balance as at January 1, 2014 116 2,466 Accrued cumulative dividends - 140 Change in fair value during the year - 271 Balance as at December 31, 2014 116 2,877 Divident payments - (66) Accrued cumulative dividends - 75 Change in fair value during the period - 35 Balance as at March 31, 2015 116 2,921 Subco Shares* Balance as at January 1, 2014 1,200 25,506 Accrued cumulative dividends - 1,450 Change in fair value during the year - 2,793 Balance as at December 31, 2014 1,200 29,749 Divident payments - (684) Accrued cumulative dividends - 774 Change in fair value during the period - 360 Balance as at March 31, 2015 1,200 30,199 Namoya Barbados Private Placement Preferred Shares Issued on February 28, 2014 20 20,000 Issued as dividends-in-kind 1 - Change in fair value during the year - (755) Balance as at December 31, 2014 21 19,245 Issued as dividends-in-kind 1 Change in fair value during the period - 297 Balance as at March 31, 2015 22 19,542 Twangiza Barbados Private Placement Preferred Shares Issued on February 28, 2014 20 20,000 Issued as dividends-in-kind 1 - Change in fair value during the year - (755) Balance as at December 31, 2014 21 19,245 Issued as dividends-in-kind 1 - Change in fair value during the period - 297 Balance as at March 31, 2015 22 19,542 Total Balance as at December 31, 2014 71,116 Total Balance as at March 31, 2015 72,204 *There are another 1,200 series B preference shares of the Company associated with the Subco Shares. Page 20 of 34

21. SHARE CAPITAL a) Authorized The authorized share capital of the Company consists of an unlimited number of common shares and an unlimited number of preference shares, issuable in series, with no par value. All share, option and warrant amounts are presented in thousands. The holders of common shares are entitled to receive notice of and to attend all meetings of the shareholders of the Company and shall have one vote for each common share held at all meetings of shareholders of the Company, except for meetings at which only holders of another specified class or series of shares are entitled to vote separately as a class or series. Subject to the prior rights of the holders of the preference shares or any other share ranking senior to the common shares, the holders of the common shares are entitled to (a) receive any dividend as and when declared by the board of directors, out of the assets of the Company properly applicable to payment of dividends, in such amount and in such form as the board of directors may from time to time determine, and (b) receive the remaining property of the Company in the event of any liquidation, dissolution or winding up of the Company. The Company may issue preference shares at any time and from time to time in one or more series with designation, rights, privileges, restrictions and conditions fixed by the board of directors. The preference shares of each series are ranked on parity with the preference shares of every series and are entitled to priority over the common shares and any other shares of the Company ranking junior to the preference shares, with respect to priority in payment of dividends and the return of capital and the distribution of assets of the Company in the event of liquidation, dissolution or winding up of the Company. As of March 31, 2015, the Company had 252,101 common shares issued and outstanding (December 31, 2014 252,101). Number of shares (in thousands) Amount Balance as at Jan 1, 2014 252,101 $ 518,615 Balance as at December 31, 2014 252,101 $ 518,615 Balance as at March 31, 2015 252,101 $ 518,615 b) Share purchase warrants (in thousands) As part of the Offering disclosed in Note 19, the Company issued to the investors 8,400 Warrants, each of which is exercisable to acquire one common share of the Company at a price of $6.65 until March 1, 2017. As of March 31, 2015, the Company had 8,400 Warrants outstanding (December 31, 2014 8,400). In April 2013, the Company issued 735 broker warrants each of which is exercisable to acquire one common share of the Company at a price of Cdn$3.25 until February 24, 2015. As of March 31, 2015, none of these warrants were outstanding (December 31, 2014 735). On August 18, 2014, warrants were issued as a part of a debt facility arranged by the Company (see Note 19). The warrants entitle the holders thereof to acquire 13.3 million common shares of the Company at a price of Cdn$0.269 per share for a period of 3 years, expiring August 18, 2017. c) Income/(loss) per share Income/(loss) per share was calculated on the basis of the weighted average number of common shares outstanding for the three months ended March 31, 2015, amounting to 252,101 (three months ended March 31, 2014 252,101) common shares. Diluted income/(loss) per share was calculated using the treasury stock method. The diluted weighted average number of common shares outstanding for the three months ended March 31, 2015 is 252,221 common shares (March 31, 2014 252,101). Page 21 of 34